The Equipment Leasing and Finance Association’s (ELFA, www.elfaonline.org)Monthly Leasing and Finance Index (MLFI-25 www.elfaonline.org/ind/research/MLFI), which reports economic activity for the $628 billion equipment finance sector, showed overall new business volume for October was $6.0 billion, up 22% from volume of $4.9 billion in the same period in 2010. Volume was down 16% from the previous month. Year-to-date cumulative new business volume is up 25%.
Credit quality metrics were improved. Receivables over 30 days were the lowest in over two years, decreasing 2.2% in October from 2.3% in September. Charge-offs also declined, from 0.9% in September to 0.7% in October.
Credit standards tightened in October as the number of lease applications approved decreased nominally to 76.3% from 76.5% the previous month. Fifty-nine percent of participating organizations reported submitting more transactions for approval during the month.
Finally, total headcount for equipment finance companies in October was unchanged month to month and down 1.4% year over year. Supplemental data show that the construction and trucking industries led the underperforming sectors.